Think you understand the Millennial real estate market? The common perception is that they are quite different from past generations. They are “urban hipsters” that aren’t all that concerned about being homeowners. They’re burdened with student debt, so they either rent longer or continue living with their parents.
However, the notions surrounding Millennials may not be entirely valid. Consider some of the following fun facts that could change how you market to this rapidly expanding group.
ARE THEY REALLY THAT DIFFERENT?
The 2022 Home Buyer and Seller Generational Trends report from the National Association of Realtors® found that the combined share of younger millennial (23 to 31 years old) and older millennial buyers (32 to 41 years old) rose to 43% in 2021, up from 37% the year prior.
Contrary to what you may think, Millennials are motivated by much the same as anybody else. Their views on home ownership often mirror those of their parents or grandparents. However, agents should be aware of the financing issues that may loom for Millennials eager to purchase their first home.
About a fourth of younger millennials cited that saving for a down payment was the most challenging part of the process. Twenty-nine percent of younger millennials received help such a gift or loan from a friend or relative. Nearly one-quarter of them lived with friends or family to save on rent.
So it makes good sense that finding the right lender is a very important part of the process:
- Agent and clients should strive to partner with experienced, responsible lenders that offer a variety of mortgage products.
- Target lenders with lower minimum credit score requirements.
- Find lenders with extended eligibility to more property types and reduced costly overlays.
MILLENNIALS AND TECHNOLOGY
Nearly two-thirds of younger millennials found the home they ultimately purchased on the internet, a number that gradually decreases with older generations. Take this to heart.
Millennials are seriously attached to their smartphones. The Internet is their go-to portal when buying clothing, cars, electronics and more—even their home. A Redfin survey stated that 45% of millennial homebuyers made offers sight-unseen in 2017.
Using technology to communicate with Millennials makes good business sense. Make yourself an expert in the area. Use social media, email and texting to maintain a top-of-mind position with this important demographic.
While they will use technology as a resource, Millennials still demand a personal touch. Relationships matter. Your marketing should strive not only to provide guidance and help, but also nurture those relationships